Prudential PLC Operating Profit Rose in First Half

By Sherry Qin

Prudential PLC reported higher adjusted operating profit in the first half of the year on higher profits from its insurance and asset-management businesses.

The insurance-and-investment business said Wednesday that its first-half IFRS-adjusted operating profit was $1.54 billion, up from $1.46 billion a year earlier. That reflected a 6% profit increase in its long-term insurance business and an 8% jump in profit generated by Eastspring, its asset-management business.

The result beat analysts' estimates of $1.50 billion, according to a company-compiled consensus.

The London- and Hong Kong-listed company's annual premium equivalent sales--a key industry metric--rose 6% to $3.11 billion but missed consensus.

Prudential's new business profit came in at $1.47 billion, down slightly from a year ago but higher than the consensus. The company attributed the decline to a high base a year ago, when it benefited from a strong rebound in its Hong Kong business after China lifted pandemic restrictions.

The company said it remains confident of achieving its compound annual growth target of 15%-20% for new business profit over 2022-2027, citing a pickup in sales momentum in June that has continued into the second half of the year.

Its key businesses in Asia and Africa "remain intact," it said, with demand staying strong as macroeconomic growth returns to the markets.

The insurer updated its capital management plan in June, unveiling a $2 billion share buyback program as part of efforts to boost shareholder returns. The buyback, which was earlier and slightly bigger than analysts' expectations, sent Prudential's Hong Kong and London shares up 6% and more than 7%, respectively, in a single day.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

August 28, 2024 01:06 ET (05:06 GMT)

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